Walter C. Gates v. United States

At different dates four assessments of manufacturer’s excise tax due were made by the Internal Revenue Service on appellant’s pickup camper body manufacturing activities. The liability for the taxes was based on 26 U.S.C. §§ 4061 (a) and 4061(b). Three of the assessments were satisfied by payments from the taxpayer and are not at issue in the suit. Payments in the amount of $15,117.94 were made on the remaining assessment of $27,757.63. None of the payments on this assessment were accompanied by instructions as to how the amount was to be applied to the tax liabilities under §§ 4061(a) and 4061(b). The Commissioner accordingly apportioned the payments between the taxes due, under the two sections, in a pro rata manner.

Subsequently, in Rev.Rule 66-163, 1966-1 Cum.Bull. 252, the Commissioner recognized that pickup camper bodies were not subject to tax liability under 26 U.S.C. § 4061 (a). The taxpayer filed a claim and, after its rejection, a suit for a refund of § 4061(a) taxes erroneously paid.

During the proceedings below both parties stipulated to the following:

At trial the government conceded the amount refundable to the appellant-taxpayer, $5,940.27 based on the following…